Gas Shortage Crisis Leaves Hotels Worried, Many Eateries Shut, Others Slash Menu, Hike Prices
Hoteliers say alternative cooking methods like firewood stoves and electric inductions are not practical for large-scale cooking.
Published : March 11, 2026 at 1:21 PM IST
Hyderabad/ Visakhapatnam: Shortage of commercial LPG amid a global hike in oil prices due to the ongoing crisis in West Asia has hit hotels and restaurants across Bengaluru, Hyderabad, Mumbai, Chennai, Delhi and Visakhapatnam. While many eateries have shut down, others are slashing their menus or increasing prices to cope with the problem. Hoteliers said if the situation persists, more establishments may be forced to close down in the coming days.
The impact is clearly visible in Hyderabad's eateries, where popular breakfast items such as vada, dosa, and puri have been temporarily removed from the menus in many places. Since these dishes require more cooking time and consume a significant amount of oil and gas, preparing these are difficult amid the shortage. The Hyderabad IT Corridor Hotels Association has also announced that tea and coffee are being temporarily stopped in some hotels due to LPG shortage.
From roadside tiffin carts to hotels, almost all food outlets depend on LPG for cooking. Hotel owners said the current cylinder stocks may last for only a day or two and if fresh supplies do not arrive soon, they will have to close. They also explained that switching to alternative cooking methods like firewood stoves or electric induction systems are not practical for large-scale cooking.
Many hotels have increased prices, citing higher transportation costs and rising prices of essential commodities. Snacks have become around 10 percent costlier. Dosa, puri, and vada prices have gone up by at least Rs 15, while idli and upma prices have risen by around Rs 10. The larger hotel chains and restaurants have reportedly raised their prices by nearly 15 percent.
K Narayana, who runs a hotel in Uppal, said his establishment had not received commercial cylinders for the past three days following which it was closed down. "We have been running this hotel for 22 years, but this is the first time we have faced such a situation. Without gas, we had to shut down the hotel," he said.
Even PG accommodations and mess services across Hyderabad have been hit as over 90 percent of cooking is done using gas. Thus, many hostels have already slashed dishes that require long cooking time and for the time being, meals are being limited to items like rice, sambar, dal, and soup.
Hyderabad has nearly 20,000 hotels, 25,000 tea stalls and small food outlets, apart from nearly 11,000 PG hostels accommodating around 10 lakh residents and 1,000 mess facilities. Nearly five lakh people are directly employed in the hotel sector with around one lakh people working in the food delivery services and nearly five lakh daily commuters relying on hotels and eateries for their meals.
A similar situation prevails in Mumbai, Delhi, and Bengaluru, where many hotels have already temporarily closed.
Visakhapatnam Hotel Merchant Association president said there is an acute shortage of commercial cylinders in the city and warned that supplies could fall further from tomorrow. He also expressed concern about creating opportunity for black-market traders. "If the problem is not resolved, it will become very difficult for hotel owners to run their establishments," he said.
Hotel representatives in Visakhapatnam have already submitted a memorandum to the district Collector seeking immediate intervention. They have also appealed to Prime Minister Narendra Modi and Andhra Pradesh Chief Minister N Chandrababu Naidu to ensure uninterrupted gas supplies to the sector.
The Telangana Hotels Association held an emergency meeting in Secunderabad to take stock of the situation. Association president Venkat Reddy said the suspension of commercial LPG supply has severely hit the hotel business and warned that if the government does not offer immediate alternatives, the association may be forced to call for a statewide hotel bandh.
The hospitality sector in the Hyderabad IT corridor has also been hit. The Hyderabad IT Corridor Hostel Association said hostels in the area are facing LPG shortage and has advised hostel owners to strictly regulate gas usage until the situation improves. The association also announced that self-cooking services in hostels will be temporarily suspended and suggested several measures to reduce gas consumption. Hostel owners have been advised to explore alternative cooking methods and strictly monitor cylinder usage.
Hostel managers said if the shortage continues for another two or three days, they may have to suspend food services completely and temporarily close the hostels. Telangana's Essarnagar, Ameerpet, KPHB, Gachibowli, Madhapur, Kondapur, Ashoknagar, and Dilsukhnagar areas, have hundreds of hostels, housing students and job aspirants, who depend on these facilities for their daily meals.
Also Read
